Conagra Brands (NYSE:CAG) Share Price Crosses Below Two Hundred Day Moving Average - Here's What Happened

Key Points

• Conagra shares fell below their 200-day moving average of $15.25, reaching an intraday low of $14.93 before trading at $15.205.
• The company reported quarterly adjusted earnings of $0.41 per share, beating the $0.28 consensus estimate; revenue of $2.60 billion slightly exceeded expectations but was down 1.4% year over year.
• Analysts’ consensus rating was “Reduce,” with an average price target of $14.07. Conagra also announced a quarterly dividend of $0.175 per share, equivalent to a 4.6% annualized yield.

Conagra Brands (NYSE:CAG - Get Free Report)'s stock price crossed below its 200-day moving average during trading on Tuesday. The stock has a 200-day moving average of $15.25 and traded as low as $14.93. Conagra Brands shares last traded at $15.2050, with a volume of 12,034,443 shares changing hands.

Wall Street Analysts Forecast Growth

CAG has been the subject of several recent analyst reports. JPMorgan Chase & Co. raised their target price on Conagra Brands from $14.00 to $15.00 and gave the company a "neutral" rating in a research note on Thursday, July 16th. Barclays reduced their price target on Conagra Brands from $17.00 to $16.00 and set an "overweight" rating for the company in a report on Friday, October 2nd. Zacks Research upgraded Conagra Brands from a "strong sell" rating to a "hold" rating in a research note on Thursday, October 1st. Royal Bank Of Canada restated a "sector perform" rating and set a $14.00 price objective on shares of Conagra Brands in a research note on Thursday, October 1st. Finally, UBS Group lifted their price objective on Conagra Brands from $13.00 to $14.00 and gave the stock a "neutral" rating in a report on Thursday, July 16th. One analyst has rated the stock with a Buy rating, twelve have given a Hold rating and five have assigned a Sell rating to the stock. According to data from MarketBeat, the company currently has an average rating of "Reduce" and a consensus target price of $14.07.

Conagra Brands Price Performance

The company has a market cap of $7.26 billion, a P/E ratio of -3.82 and a beta of 0.02. The company's 50-day moving average price is $14.53 and its two-hundred day moving average price is $15.25. The company has a current ratio of 1.10, a quick ratio of 0.39 and a debt-to-equity ratio of 1.08.

Conagra Brands (NYSE:CAG - Get Free Report) last issued its quarterly earnings results on Wednesday, September 30th. The company reported $0.41 EPS for the quarter, topping the consensus estimate of $0.28 by $0.13. The business had revenue of $2.60 billion for the quarter, compared to analysts' expectations of $2.59 billion. Conagra Brands had a negative net margin of 16.95% and a positive return on equity of 11.46%. The company's quarterly revenue was down 1.4% compared to the same quarter last year. During the same quarter last year, the company posted $0.39 earnings per share. Conagra Brands has set its FY 2027 guidance at 1.400-1.500 EPS. As a group, sell-side analysts expect that Conagra Brands will post 1.46 earnings per share for the current year.

Conagra Brands Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, December 3rd. Shareholders of record on Thursday, November 5th will be issued a dividend of $0.1750 per share. This represents a $0.70 dividend on an annualized basis and a dividend yield of 4.6%. The ex-dividend date of this dividend is Thursday, November 5th. Conagra Brands's dividend payout ratio is -17.59%.

Hedge Funds Weigh In On Conagra Brands

Large investors have recently bought and sold shares of the business. BlackRock Inc. bought a new stake in Conagra Brands in the second quarter valued at $1,071,275,000. Dimensional Fund Advisors LP grew its position in shares of Conagra Brands by 9.7% during the first quarter. Dimensional Fund Advisors LP now owns 19,323,789 shares of the company's stock worth $303,771,000 after acquiring an additional 1,701,624 shares during the last quarter. Bank of New York Mellon Corp bought a new position in shares of Conagra Brands during the second quarter worth about $47,815,000. Wilsey Asset Management Inc. increased its holdings in shares of Conagra Brands by 5.5% in the 2nd quarter. Wilsey Asset Management Inc. now owns 2,371,086 shares of the company's stock worth $31,915,000 after acquiring an additional 122,713 shares during the period. Finally, Freestone Grove Partners LP acquired a new stake in shares of Conagra Brands in the 2nd quarter worth about $30,316,000. Institutional investors own 83.75% of the company's stock.

About Conagra Brands

Conagra Brands is a packaged-food company that develops, manufactures and markets products for retail, foodservice and other customers. Its offerings include frozen meals and vegetables, snacks, baking products, condiments, cooking ingredients and meat snacks. The company's portfolio includes brands such as Birds Eye, Healthy Choice, Marie Callender's, Duncan Hines, Slim Jim, Orville Redenbacher's, Hunt's, Banquet and Reddi-wip. Its products are sold primarily in the United States, as well as in international markets.

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